Social Justice Opening Unit

Consumer EducationConsumer EducationBanking2Bank a financial business thus, its 1st goal is to make profit

makes profit by creating loans and charging interest

uses depositors money to create loans for others.3Savings an account for saving money

withdraw, deposit and use an ATM card

pays small rate of interest4Checking a money managing account

writing, depositing and cashing checks

direct deposit and automatic withdrawal

ATM / debit card

usually does not pay interest

Check a paper certificate that allows funds to be transferred from one checking account to another

Interest a percentage charged on borrowed money

people with better credit scores will be charged less interest

Debit / Checking Card a card that electronically does the same as a check

FDIC Federal Depositors Insurance Corporation

U.S. gov. insures all bank deposits up to $250,000.

Consumer EducationTaxesPurpose of TaxesProvides revenue to govnt to pay for govt provided servicesFixing roads, bridges, dams, etc.Paying for schools, public education, community colleges, etc.Safety net servicesLink cardsWelfareSubsidized housing (Section 8, CHA, etc.)Social SecurityMedicare / MedicaidDepartment of DefensePays govt employeesElected officialsGovt dept staffMilitaryPostal ServiceTaxes Required payment to the government12Types of Taxes Sales Tax (IL and Chicago Revenue)

Income Tax (U.S. and IL Revenue)

Property Tax (Cook County Revenue)13Types of Tax Rates Proportional: everyone is charged the same percent regardless of income (IL income tax)

Progressive: greater your income, higher your percent rate; the ability-to-pay principle (federal income tax)

Regressive: flat rate, but takes a larger proportion from those with lower-incomes (Chicago sales tax)14Federal Income Tax BracketsFrom $0 - $8,350 = 10%

From $8,351 - $33,950 = 15%

From $33,951 $82,250 = 25%

From $82,251 $171,550 = 28%

From $171,551 - $372, 950 = 33%

From $372,951 and above = 35%Consumer EducationCreditCredit access to borrowed money17Some Types of Credit car loans (car note)

mortgages

student loans

retail loans

credit cards18Important Terms re. Credit Internet Rate: the percentage charged on the money borrowed

Credit Score: represents your reputation when it come to borrowing money

good credit: good access to borrowed money

bad credit: bad access to borrowed money19